To amend the Internal Revenue Code of 1986 to increase the deduction for host families of foreign exchange and other students from $50 per month to $200 per month.

February 25, 2003

Mr. ANDREWS introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to increase the deduction for host families of foreign exchange and other students from $50 per month to $200 per month.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Youth Exchange Support Act of 2003'.

SEC. 2. INCREASE IN CHARITABLE DEDUCTION FOR AMOUNTS PAID TO MAINTAIN CERTAIN STUDENTS AS MEMBERS OF TAXPAYER'S HOUSEHOLD.

(a) IN GENERAL- Subparagraph (A) of section 170(g)(2) of the Internal Revenue Code of 1986 (relating to amounts paid to maintain certain students as members of taxpayer's household) is amended by striking `$50' and inserting `$200'.

(b) ADJUSTMENT FOR INFLATION- Section 170(g) of such Code is amended by adding at the end the following new paragraph:

`(5) ADJUSTMENT FOR INFLATION-

`(A) IN GENERAL- In the case of any taxable year beginning in a calendar year after 2003, the $200 amount contained in paragraph (2)(A) shall be increased by an amount equal to--

`(i) $200, multiplied by

`(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting `calendar year 2002' for `calendar year 1992' in subparagraph (B) thereof.

`(B) ROUNDING- If any increase determined under paragraph (1) is not a multiple of $10, such increase shall be rounded to the next highest multiple of $10.'.

(c) EFFECTIVE DATE- The amendments made by this Act shall apply to taxable years beginning after December 31, 2002.

END